Jacqueline Bradley (59) was sentenced to seven years and five months imprisonment at the Auckland District Court on October 19.
She was found guilty by a jury in September of 75 Crimes Act charges that she faced following a Serious Fraud Office (SFO) prosecution.
Mrs Bradley was a director of B’On Financial Services Ltd (B’On) which she operated with her late husband.
The company sought funds from clients on the pretext of investing in various funds established in New Zealand and offshore.
However, the money paid to B’On for investment was not used in accordance with the requirements of their clients, but to make repayments to other investors, and to fund the personal lifestyle of the Bradleys through their Family Trust.
Between April 2003 and November 2009, the offending totalled $14.4 million (plus an additional AUD$840,000 from Australian investors).
SFO Acting Chief Executive Simon McArley said “B’On investors based their investments on a degree of trust and affinity towards Mrs Bradley.
“The scheme cost some investors their life savings. This is an unfortunate reminder of the danger of making investment decisions based on trust alone.”
This case marks the third prosecution involving an affinity fraud by financial advisors completed by the SFO in the last three months. Offending in all these cases amounted to about $21 million.
Source: Serious Fraud Office Press Release
